The short answer
Government Order 828/18-4-2025 dated 6 November 2025 repays part of the freight an Uttar Pradesh (UP) micro, small or medium enterprise (MSME) exporter unit itself paid from the production site to the gateway port: Rs 20,000 per 20 foot container or Rs 40,000 per 40 foot container, or 30 percent of freight, whichever is less. Sell Free on Board (FOB) and that truck is usually yours. Sell Ex Works (EXW) and it is usually the buyer’s.
The rule that decides everything: a chartered accountant (CA) must certify, from your books, that your unit paid the freight to the transporter or the Container Corporation of India (CONCOR). The sale term only says who should have paid.
Verified as on 19 October 2026 against Government Order No. 828/18-4-2025 dated 6 November 2025 and its annexures (Hindi original), section 8.3 of the UP Export Promotion Policy 2025-30 (English translation by Invest UP) and the Incoterms 2020 pages of the International Chamber of Commerce (ICC). Written by Pratham Agarwal, Founder, Rasp International.
Rs 40,000limit per 40 foot container, or 30 percent of freight if lower, Government Order 828 paragraph 1
Rs 30 lakhyearly cap per unit, Government Order 828 paragraph 1
180 daysfrom the shipment date to file, Government Order 828 paragraph 5(1)
11sale terms in Incoterms 2020, ICC
Key facts: the UP freight subsidy and your sale term
| Scheme | Grant on the freight of goods sent to the gateway port for export |
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| Governing body | Export Promotion Bureau, Uttar Pradesh; the Authorised Committee chaired by the Export Commissioner decides claims, paragraph 6 |
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| Parent policy | UP Export Promotion Policy 2025-30, Government Order No. 684/18-4-2025/18-4099/31/2025 dated 3 September 2025 |
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| Legal basis | Government Order No. 828/18-4-2025 dated 6 November 2025, in force immediately, paragraph 13 |
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| Who it is for | MSME exporter units of UP, merchant or manufacturer, registered with the Bureau and the Uttar Pradesh Export Promotion Council (UPEPC) at the time of the work, paragraph 10 |
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| What you get | Lower of Rs 20,000 per 20 foot or Rs 40,000 per 40 foot container and 30 percent of freight; Rs 30 lakh per unit per financial year, paragraph 1 |
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| Validity or deadline | Within 180 days of the shipment date; later claims not accepted, paragraph 5(1) |
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| Where you apply | Online on the department’s portal, checked first at the district, paragraph 5 |
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Why we wrote this
Our main guide to the UP freight subsidy to the gateway port covers rates, caps, the 180 days and the papers. This post takes the question that comes first: did your unit pay the inland freight at all. Many exporters sell on terms where someone else pays the truck. Rasp International files UP subsidy claims in the client unit’s name, so the sale term and the freight bill must agree first.
What the freight subsidy and Incoterms are
The UP port freight subsidy is a state grant that repays part of the inland freight an MSME exporter unit of Uttar Pradesh spends to move export goods from its production site to a gateway port, run by the Export Promotion Bureau, Uttar Pradesh under the UP Export Promotion Policy 2025-30. Goods may go through an inland container depot (ICD) or a container freight station (CFS), by truck or partly by truck.
Incoterms 2020 are a set of eleven three letter trade terms published by the ICC that say where the seller delivers, which costs each side pays and when risk passes. Seven suit any transport: Ex Works (EXW), Free Carrier (FCA), Carriage Paid To (CPT), Carriage and Insurance Paid To (CIP), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP). Four are for sea and inland waterway only: Free Alongside Ship (FAS), FOB, Cost and Freight (CFR) and Cost Insurance and Freight (CIF).
The ICC Academy sums up the cost rule. Under E, F and D terms, a cost before delivery is the seller’s and a cost after delivery is the buyer’s. Under C terms, the seller also pays carriage to the destination. Incoterms do not set the price or when ownership passes (US International Trade Administration), and Government Order 828 never mentions them. For other UP schemes, see the UP export subsidy schemes hub.
Sale term by sale term: who pays the truck to the port
The second column follows the ICC rule. The third is how we read Government Order 828, not the order’s wording.
| Sale term or situation | Who pays the inland leg (ICC rule) | What your unit can usually show (as we read the order) | Source |
|---|
| EXW your factory | Buyer: loads, transports and clears for export | Nothing to claim | ICC Academy, EXW |
| FCA your factory | Buyer, after the seller loads the buyer’s vehicle | Nothing to claim | ICC Academy, FCA |
| FCA a named ICD | Seller to the ICD; buyer from the ICD to the port | Factory to ICD leg only; open point | ICC cost rule; table (i) |
| FCA the port terminal | Seller, up to the terminal | Full inland freight | ICC cost rule; paragraph 1 |
| FAS port of shipment | Seller, to alongside the vessel | Full inland freight | ICC Academy |
| FOB port of shipment | Seller, until loaded on board | Full inland freight | ICC Academy, FOB |
| CFR destination port | Seller, plus sea freight | Inland freight only | ICC; paragraph 1 |
| CIF destination port | Seller, plus sea freight and insurance | Inland freight only | ICC; paragraph 1 |
| CPT or CIP destination | Seller, carriage to the destination | Inland freight, once billed apart | ICC Academy |
| DAP, DPU or DDP destination | Seller, the whole journey | Inland freight, once billed apart | ICC Academy, DDP |
| FOB, buyer’s forwarder trucks and bills your unit | Seller | Haulage line, if shown apart | CA certificate |
| One all in forwarder invoice | Depends on the term | Nothing clear until haulage is split per container | Table (i); CA certificate |
| Merchant exporter, supplier delivers inside the price | Supplier | No bill in your name | Policy section 8 |
| Supplier bills freight as a separate line | Your unit, through the supplier | Open point | CA certificate |
| Group company pays the transporter | Not an Incoterms question | Open point | CA certificate |
| Freight billed back to the buyer as a line | Buyer, under the contract | Open point | Paragraph 1 |
| Less than container load (LCL) through an ICD or CFS, small exporter | Depends on the place of delivery | Your charge per cubic metre (CBM); method open | Paragraph 2; table (ii) |
| Road export to Nepal or Bangladesh | Seller, to the named place | Freight to the dry port | Paragraph 3 |
Rasp International handles export compliance and incentives.
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One container, six sale terms: an illustrative example
Illustrative example, round numbers, not client figures. A 40 foot container leaves a UP factory: truck to the ICD Rs 20,000, rail to the port Rs 80,000, so Rs 1,00,000 inland before Goods and Services Tax (GST). Sea freight is Rs 1,50,000. Each row applies paragraph 1 of Government Order 828 to basic freight without GST, the narrowest figure the forms ask for.
| Sale term | Inland freight your unit paid (Rs) | 30 percent (Rs) | Possible grant, limit Rs 40,000 (Rs) |
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| EXW factory | Nil | Nil | Nil |
| FCA factory | Nil | Nil | Nil |
| FCA at the ICD | 20,000 | 6,000 | 6,000, if one leg is accepted |
| FOB | 1,00,000 | 30,000 | 30,000 |
| CIF | 1,00,000 (sea freight excluded) | 30,000 | 30,000 |
| DAP, one through rate | 1,00,000 if split, nil if not | 30,000 | 30,000 or nil |
CIF earns no more than FOB, because the order stops at the gateway port. EXW or FCA at the factory earns nothing. Every amount is subject to approval and budget.
What the Incoterm decides and what Government Order 828 decides
| Point | Incoterms 2020 (ICC) | Government Order 828 |
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| Who it binds | Buyer and seller who adopt it | The state, the unit and the Authorised Committee |
| Question it answers | Where delivery happens, who pays which cost | Did the unit incur freight to the gateway port, paragraph 1 |
| Truck or rail to the port | Seller under FAS, FOB, C and D terms | Reimbursed in part |
| Sea freight | Seller under C and D terms | Not covered |
| Insurance | Seller must insure only under CIF and CIP | Not mentioned |
| Export clearance | Seller under every term except EXW | Not covered |
| Proof | Contract, invoice, transport document | Shipment tables, CA certificate, ICD or CFS report |
| Clock | None | 180 days from the shipment date, paragraph 5(1) |
What most people get wrong about who paid
The common mistake is to read Government Order 828 as a grant per container shipped. It reimburses freight the unit spent, as three official texts say.
In the official words: paragraph 1 of Government Order 828 speaks of reimbursing expenditure incurred on freight to the gateway port (our English rendering). The CA certificate, printed in English in the order, says the exporting unit “have incurred total expenses” towards “freight paid to the transporter/concor”, based on its “books of accounts”. Section 8.3 of the UP Export Promotion Policy 2025-30 says 30 percent “of the freight expenditure incurred by the exporting unit”.
So the freight must sit in the claiming unit’s books. An Incoterm cannot create that payment. The same who paid test applies to air shipments under Government Order 829, as our post on the UP air freight subsidy, courier shipments and sale terms explains.
Where the official texts do not match
- Section 8.3 of the policy speaks of ICDs or CFSs “located within the State”; paragraph 1 of the order does not. If your container moved through an ICD or CFS outside Uttar Pradesh, check with the Export Promotion Bureau UP before you claim it.
- Paragraph 2 gives LCL help but prints no rate. Table (ii), headed “Basic Freight Amount Incurred”, asks only for the CBMs claimed, cost per CBM and total cost. Check with the Export Promotion Bureau UP how the LCL amount is worked out. We give no rate of our own.
- Section 8 of the policy says amounts shall be adjusted yearly for inflation; the order prints fixed figures.
Four mix-ups that cost exporters the claim
The buyer’s forwarder collects at the factory
On EXW or FCA factory sales, the buyer’s forwarder trucks the goods and bills the buyer. Your unit may still be the exporter on the shipping bill, but the truck is not your cost, so a CA has nothing to certify.
Freight buried in an all in forwarder invoice
Under FOB, CFR or CIF, many units get one bill for haulage, terminal handling, paperwork and sea freight, GST on the total. Table (i) wants each leg separately, and the CA certificate wants freight without GST per container. Ask for that shape before shipment. The certificate names the transporter or CONCOR, so check with the Export Promotion Bureau UP that a forwarder’s bill is accepted.
A merchant exporter whose supplier delivers to the port
Section 8 of the policy makes merchant exporters eligible. If the supplier delivers inside the goods price, your unit holds no freight bill. As we read the order, a merchant’s freight is claimable when the merchant books and pays the truck itself. Check with the Export Promotion Bureau UP if the supplier bills freight separately or its factory is outside Uttar Pradesh.
Freight paid by a group company
The CA certificate says the exporting unit itself incurred the freight, and paragraph 7 pays by Direct Benefit Transfer to the beneficiary’s account. Check with the Export Promotion Bureau UP before claiming freight another company paid, even inside the same group.
Rasp International handles export compliance and incentives.
Talk to our team for a free assessment. 500+ exporters served since 2019.
Who can usually show freight paid and who cannot
- Units selling FAS, FOB, CFR, CIF or FCA at the port that pay the transporter or CONCOR themselves.
- Units selling C or D terms with the inland leg billed as its own line.
- Small exporters, average exports Rs 5 crore or less over 3 years, shipping LCL through an ICD or CFS, paragraph 2.
- Units selling EXW or FCA at their own factory.
- Merchant exporters whose supplier delivers inside the goods price.
- Claims for sea freight or cargo insurance.
- Units without Bureau and UPEPC registration at the time of the work, paragraph 10.
- Air shipments, covered by the separate UP air freight subsidy under Government Order 829.
Edge cases, with the order cited
FCA at an ICD: only part of the route is yours
Under FCA at a named ICD, only the truck to the ICD is the seller’s cost. Table (i) of Government Order 828 splits freight by leg, “whichever is applicable”. Check with the Export Promotion Bureau UP that a claim for the factory to ICD leg alone is accepted.
Exports to Nepal or Bangladesh by road
Paragraph 3 of Government Order 828 counts dry ports that trucks or containers pass on the way to neighbouring countries as gateway ports. On a sale delivered across the border, as we read the order, the leg up to the dry port is the part to bill apart and claim.
Steps to keep your inland freight claimable
- Choose the place of delivery knowingly. FOB, CFR, CIF or FCA at the port keep the inland leg with your unit.
- Check both registrations before you ship. Paragraph 10 needs them at the time of the work.
- Brief the transporter or forwarder. Bills in your unit’s name, per container, GST apart.
- Pay from the unit’s own account. The CA certifies from its books.
- Ask the ICD or CFS for the Annexure III report early.
- File within 180 days of the shipment date, paragraph 5(1). The UP export subsidy deadline calculator shows your last date, as we count it.
- Watch the 15 day windows. 15 days to correct your own form, paragraph 5(3); 15 days to upload missing records if reverted, or the claim is cancelled automatically, paragraph 5(4).
Paragraph 5(1) bars claims after 180 days. There is no fast track; paragraph 9 gives payment priority only to units that joined state, Bureau or UPEPC fairs. See every UP clock in our post on UP export subsidy deadlines.
Five groups this affects
- Manufacturers selling FOB, CFR or CIF. The freight is usually theirs; the risk is a bill without a clear haulage line.
- Suppliers to large buyers on EXW or FCA factory terms. The risk is claiming the buyer’s freight.
- Merchant exporters. The risk is no freight bill in their name. See our freight advisory and export logistics page.
- Small LCL exporters. The risk is a consolidator bill with no per CBM charge.
- Groups with one logistics desk. The risk is a bill in the wrong company’s name. See our container transportation page.
Illustrative composite: the all in invoice that ran out the clock
Illustrative composite, not a client. A metalware unit in western UP sold 12 forty foot containers FOB in one quarter. The buyer’s nominated forwarder trucked them and sent one invoice per shipment, haulage mixed with terminal and paperwork charges, GST on the total. The unit filed in month five. The district reverted the claim because freight without GST could not be shown per container. The forwarder took three weeks to split the bills, the 15 day window under paragraph 5(4) closed and day 180 had passed for a fresh claim. At Rs 1,00,000 haulage per container, about Rs 3.6 lakh was lost. One line in the forwarder brief would have saved it.
How Rasp International helps
- Founded in 2019, ISO 9001:2015 certified, 500+ exporters served since 2019.
- We file on your behalf in your unit’s name; an authority letter only if you ask.
- We sign a non-disclosure agreement (NDA) and a service level agreement (SLA) with every client.
- You and we both hold the portal logins, kept safe and confidential.
- We handle freight and air freight subsidy claims for clients. In Rasp International’s experience, the Export Promotion Bureau UP has been helpful and responsive.
- We hold no customs broker (CHA) licence; licensed CHA partners across India handle customs clearance.
The Authorised Committee decides every claim. We never promise approval or payment.
Honest limits
- No sale term creates a claim. Only freight your unit paid can count.
- Government Order 828 pays nothing on the sea leg, so CFR or CIF earns no more than FOB.
- Only the Export Promotion Bureau UP can settle the open points below, and the order sets no time for its answer.
What Is Not Yet Notified, Checked on 19 October 2026
- Whether a forwarder’s bill counts as freight paid to the transporter. Check with the Export Promotion Bureau UP.
- Whether one leg of an FCA ICD route can be claimed alone. Check with the Export Promotion Bureau UP.
- Whether freight paid by a group company or supplier counts. Check with the Export Promotion Bureau UP.
- Whether freight billed back to the buyer counts. Check with the Export Promotion Bureau UP.
- How LCL help is worked out. Check with the Export Promotion Bureau UP.
- Whether an ICD or CFS outside Uttar Pradesh qualifies. Check with the Export Promotion Bureau UP.
- Whether the yearly inflation adjustment has changed any figure. Check with the Export Promotion Bureau UP.
Frequently asked questions
Can I claim the UP freight subsidy if I sell ex works?
Usually not. Under Ex Works in the Incoterms 2020 rules, the buyer arranges and pays all transport from your premises. Government Order 828 reimburses freight your unit incurred, which a CA must certify from your books. If the buyer’s forwarder paid the truck, there is nothing of yours to certify.
Does an FOB sale qualify for the UP freight subsidy?
Usually yes for the inland leg. Under Free on Board the seller bears costs until the goods are loaded on the vessel. If the truck or rail bills are in your unit’s name, you may be able to claim the lower of 30 percent and the container limit under paragraph 1.
Can I claim under CIF or CFR terms?
Yes for the inland leg, if your unit paid it. Under CFR and CIF the seller pays inland and sea freight. Government Order 828 covers freight from the production site to the gateway port only, so sea freight and insurance stay out. The grant is no higher than under FOB.
What happens if I sell FCA at an ICD?
Under Free Carrier at a named ICD, your unit pays the truck to the ICD and the buyer pays the rail onward. Table (i) of Government Order 828 has a column for each leg. Check with the Export Promotion Bureau UP that a claim for one leg is accepted.
My buyer’s forwarder trucked the container. Can I claim?
Only if your unit paid for that truck. If the forwarder billed the buyer, the freight is not in your books and a CA cannot certify it. If it billed your unit for haulage under an FOB or CIF sale, that line may be claimable, subject to approval and budget.
What should I do with an all in forwarder invoice?
Ask the forwarder to reissue it with inland haulage per container shown apart from terminal handling, paperwork and sea freight, and GST separate. The CA certificate in Government Order 828 asks for freight without GST, container by container. Do this before shipment, not close to day 180.
Does ocean freight count under Government Order 828?
No. Paragraph 1 of Government Order 828 covers freight from the production site to the gateway port, through an ICD or CFS or by truck. Sea freight from the port to the buyer lies beyond that point, so a CIF sale earns no more under this order than an FOB sale.
Does freight collect on the bill of lading stop my claim?
Not by itself. Freight collect on a bill of lading refers to sea freight, which the buyer pays under FOB. Government Order 828 looks at inland freight to the gateway port. As we read the order, the inland freight bill in your unit’s name decides it.
Can a merchant exporter claim when the supplier delivers to the port?
Usually not for that shipment. Merchant exporters are eligible, and the form asks whether the unit is a merchant or manufacturer. But if the supplier delivers inside the goods price, your unit holds no freight bill. Check with the Export Promotion Bureau UP if the supplier shows freight separately.
Can a group company pay the freight for my unit?
Be careful. The CA certificate in Government Order 828 states that the exporting unit itself incurred the freight. The grant goes by Direct Benefit Transfer to the beneficiary. Check with the Export Promotion Bureau UP before claiming freight another company paid, even inside the same group.
What does the CA certificate say about who paid the freight?
The format in Government Order 828 says the exporting unit has incurred total expenses towards freight paid to the transporter or CONCOR. It lists each container with invoice, shipping bill, bill of lading, bank realisation amount, freight without GST and total freight bill, plus a Unique Document Identification Number (UDIN).
What is the LCL rate under Government Order 828?
Government Order 828 prints none. Paragraph 2 allows LCL help for units with average exports of Rs 5 crore or less over 3 years, through an ICD or CFS. Table (ii) asks for CBMs claimed, cost per CBM and total cost. Check with the Export Promotion Bureau UP how the amount is worked out.
Does the sale term change the Rs 30 lakh cap?
No. Paragraph 1 of Government Order 828 limits each container to the lower of 30 percent of freight and Rs 20,000 or Rs 40,000, and each unit to Rs 30 lakh per financial year, whatever the sale term. The term only decides whether your unit paid freight that can count.
What happens if I claim freight my unit did not pay?
Your affidavit says the information is true and complete. If a unit misuses the grant or knowingly gives false or hidden facts, paragraph 11 of Government Order 828 allows recovery of the whole amount as revenue dues and blacklisting from government financial help.
Do I need a consultant to file a Government Order 828 claim?
No. Any eligible unit can file online itself. A consultant helps when sale terms, forwarder bills and the CA certificate must be matched shipment by shipment within the 180 days of paragraph 5(1). We file on the client’s behalf, in the client unit’s name, and we never promise approval or payment.
Your checklist for this week
- List the sale term of every export invoice shipped in the last 180 days.
- Ask your forwarder to split any all in bill into haulage per container, GST apart.
- Check that each freight bill and payment is in the claiming unit’s name.
- Enter each shipment date in the deadline calculator and note each last date.
Sources
- Tier 1. Government Order No. 828/18-4-2025 dated 6 November 2025, paragraphs 1 to 13, Annexure 1 form and tables (i) and (ii), affidavit, Annexure III report and CA certificate format: upepc.org.
- Tier 1. Export Promotion Bureau, Uttar Pradesh, Government Orders list: epb.up.gov.in.
- Tier 1. Government Order No. 684/18-4-2025/18-4099/31/2025 dated 3 September 2025, UP Export Promotion Policy 2025-30, sections 8 and 8.3, English translation: invest.up.gov.in.
- Tier 2. ICC, Incoterms 2020: iccwbo.org.
- Tier 2. ICC Academy, FCA and FOB explained: academy.iccwbo.org.
- Tier 2. ICC Academy, FCA and EXW explained: academy.iccwbo.org.
- Tier 2. ICC Academy, DDP and EXW explained: academy.iccwbo.org.
- Tier 2. ICC Academy, 2020 and 2010 compared: academy.iccwbo.org.
- Tier 2. ICC Academy, costs before and after delivery: academy.iccwbo.org.
- Tier 2. US International Trade Administration, Know Your Incoterms: trade.gov.
This is general guidance. Rules change. Check the current notification or order, or speak to us, before you act.
Related: UP freight subsidy to the gateway port | UP export subsidy schemes | UP export subsidy deadlines
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